Research for Department of Defense

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Bidding Behavior in DoD's Commercial Activities Competitions
January 1, 1998
In a previous study, CNA analysts used data from past DoD A-76 competitions to construct a model of savings and projected the potential savings from additional DoD Commercial Activities (CA) competitions. In this paper, we use an alternative approach for estimating savings from future Dod CA competitions. We estimate two separate bidding equations - one for the in-house team bid and another for the minimum contractor bids - along with an equation for baseline cost. Based on these estimated equations, one could then indirectly project future savings in the A-76 inventory as the difference between predicted baseline cost and the predicted winning bid. Using the new approach, we project an annual savings of $6 billion if the entire 1995 DoD CA inventory were competed under A-76 rules.
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Case Studies in DoD Outsourcing
January 1, 1997
As part of the ongoing Outsourcing Opportunities for the Navy study, CNA was asked to think about how to implement new outsourcing and privatization initiatives. Because DoD has substantial experience in relying on the private sector for goods and services, we chose to assemble some of those experiences and look for common lessons learned. This report presents recently completed case studies in training, housing, maintenance, and base operating support.
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Analysis of DOD's Commercial Activities Program
December 1, 1996
In 1955, the Office of Management and Budget (OMB) implemented a policy known as the Commercial Activities (CA) Program. This program enables the private sector to compete with government organizations in providing goods and services when it is appropriate and economical to do so. The objective is to promote an efficient support structure through competition. This research memorandum is part of a CNA-initiated research effort examining the DoD Commercial Activities program. Most of our previous research has examined the Navy CA program. This paper presents the results of all completed DoD comprehensive A076 competitions between 1978 and 1994.
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Getting the Most Out of Integrated Product Teams (IPTs)
October 1, 1996
An Integrated Product Team (IPT) is a multi-functional team formed for the specific purpose of delivering a product or developing a process or policy. IPTs are set up to foster parallel rather than sequential decisions and to guarantee that all aspects of the product, process, or policy are considered throughout the development process. To most organizations, IPTs represent a fundamental departure from past practice, one that requires changes to structures, policies, processes, and even philosophy. Consequently, IPTs need strong high-level and middle-management support and continual reinforcement to succeed. In 1995, secretary of Defense Perry directed the use of IPTs for defense acquisition. In this paper, we examine government, industry, and academia's experience with IPTs. Based on our research, we recommend ways to better implement this new management approach.
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Implementing A-76 Competitions
May 1, 1996
As part of the Outsourcing Options study, N4 asked CNA to look across the services and DoD agencies to evaluate different practices and lessons learned in implementing A-76 procedures. Earlier work suggested that big savings are possible if the Navy chooses to start large-scale competitions. Since OMB is revising - rather than withdrawing - its A-76 policies, CNA focused on how the process could be streamlined to maximize savings. In this brief, we first review the evidence of competition savings found across DoD. We then discuss what role senior Navy leadership can play in easing implementation, as well as specific ways to streamline the process. We also suggest best contracting practices. Finally, we touch on employee transition issues.
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The In-House Cost to Implement DOD Regulations
June 1, 1995
In this paper, we compare the in-house cost of conducting Department of the Navy program management and oversight in accordance with Department of Defense regulations and requirements, to the cost of conducting those same functions in accordance with commercial practice.
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When the Hawks Come Home To Roost: The Macroeconomic Implications of the Peace Dividend
November 1, 1992
The end of the cold War and the breakup of the Soviet Union have many global implications, the most interesting of which is the potential for lasting peace. Lasting peace can allow the United States to change politically, militarily, and economically. One obvious concern is that this transition be as efficient as possible. Resources that are being freed up from defense-related endeavors can be shifted to alternative uses. How can we, as a society, ensure that the transition is smooth and efficient? If there is a 'dividend' of peace, are there government policies that will use the dividend most effectively? This paper addresses the economic implications of peace for the United States.
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